In the first article in this series, I wrote about Playing the Infinite Game. Here’s how the philosophy applies to your business.
Gym ownership is not a zero-sum game. To get a new client, I don’t have to take one of yours.
In fact, it’s a positive-sum game. As more gyms open, the cost of opening a gym goes down. Equipment is cheaper now than it’s ever been. And best of all: The expensive lessons learned by tens of thousands of gym owners are available in our Incubator. You can pay a little and dodge hundreds of thousands of dollars in costs.
Microgym owners can make a great living from 150 clients. That’s it: 150 great people paying the right rate and staying long enough to stabilize the business.
You don’t need to fight me for clients. I don’t need to fight you for coaches.
Fear Vs. Facts
New fitness Founders think they have to compete for a few simple reasons:
- We’re mostly first-time entrepreneurs.
- We’re scared.
- We don’t have a buffer (we need to make money now).
- We think the market is limited.
This was me, in 2005.
I opened Catalyst with 30 clients. But that wasn’t enough, and I thought I had to take clients from other local trainers to succeed. I remember saying to my partner, “I’m going to bankrupt everyone else!”
But I didn’t. Many of the microgyms that were around in 2005 are still around today. They kept some clients and got new clients. Some of theirs came to me, and some of mine went to them. If they were good at business, they’re still operating.
The key to a good gym isn’t getting clients. It’s keeping clients. And in a small city, even when the major employers go bankrupt, there are more than enough clients—if you build your business the right way.
In the next articles in this series, I’ll write about why this is true. I’ll explain how you can avoid having “competition,” describe the mindset necessary for success, show why you want a Two-Brain gym next door, and detail how we’re going to make 1 million fitness entrepreneurs wealthy.